Hexatronic Group (HTRO) Q1 2025 earnings summary

Executive summary

• Q1 net sales rose 6% year-over-year to SEK 1,882 million, with 10% EBITA growth and a 9.8% margin, led by a record 41% increase in Data Center sales, offsetting a 2% decline in Fiber Solutions.

• The business is diversified across Fiber Solutions, Harsh Environment, and Data Center, with a global footprint and local production on all active continents.

• New CEO Rikard Fröberg appointed in March 2025; segment reporting now aligns with the three business areas for improved transparency.

• Good financial flexibility maintained, with net debt/EBITDA at 1.9x and liquidity of SEK 1,783 million.

Financial highlights

• Net sales reached SEK 1,882 million, up 6% year-over-year; organic growth was 1%, with 4% from acquisitions and 1% from FX.

• EBITA was SEK 184 million, up 10% year-over-year, with a margin of 9.8%; profit for the period up 40% to SEK 86 million; EPS after dilution SEK 0.42.

• Gross margin improved to 41.6%, up 1.1 percentage points, mainly due to manufacturing efficiency.

• Net debt increased by SEK 43 million to SEK 1,923 million; liquidity position remains strong.

• Operating costs increased to 28.6% of net sales, mainly due to higher freight and CEO transition costs.

Outlook and guidance

• Cautiously optimistic view for 2025, expecting continued growth in Data Center and Harsh Environment, with Fiber Solutions facing price pressure in Europe but opportunities in North America and APAC.

• Seasonality patterns expected to remain similar to previous years, with stronger Q2 and Q3 for Fiber Solutions.

• US manufacturing of fiber optic cables to start in Q2 2026, reducing tariff exposure.

• Financial targets of 20% annual growth and 15-17% EBITDA margin over the business cycle remain valid and under review.